The decision comes as a result of years of bumps and setbacks for the overhaul, including legal challenges and political opposition that have hampered its implementation. Last summer, the Supreme Court upheld the law but struck down a mandatory expansion of Medicaid.State officials and businesses held off changing their policies through the 2012 presidential campaign because Obama's GOP opponent, Mitt Romney, had promised to repeal the law.

The so-called employer mandate, which penalizes employers with more than 50 employees if they fail to provide a minimum standard of affordable health insurance, was set to kick in in 2014, but now will take effect in 2015... The delay not only allows the Administration time to alleviate concerns among business owners, but also takes a controversial component of the law off the table before the midterm elections.

In a significant setback for President Obama's signature domestic initiative, the administration on Tuesday abruptly announced a one-year delay, until 2015, in his health care law's mandate that larger employers provide coverage for their workers or pay penalties. The decision postpones the effective date beyond next year's midterm elections.